BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       AB 710                                       
          A
          AUTHOR:        Yamada                                       
          B
          AMENDED:       June 26, 2009                               
          HEARING DATE:  July 8, 2009                                 
          7              
          CONSULTANT:                                                 
          1
          Tadeo/                                                      
          0
                                        

                                     SUBJECT
                                         
           Veterans' Substance Abuse and Mental Health Services Fund

                                     SUMMARY  

          Requires the California Department of Veterans Affairs to  
          apply to the federal Substance Abuse and Mental Health  
          Services Administration for funding to award grants to  
          community-based organizations to provide substance abuse  
          and mental health services to veterans.  

                             CHANGES TO EXISTING LAW  

          Existing federal law:
          Establishes the Veterans Health Administration, within the  
          U.S. Department of Veterans Affairs (VA), to provide health  
          care and other benefits to veterans and their families and  
          administer VA medical centers and outpatient clinics.

          Establishes the Substance Abuse and Mental Health Services  
          Administration (SAMHSA), within the U. S. Department of  
          Health and Human Services, to improve the quality and  
          availability of prevention, treatment, and rehabilitative  
          services in order to reduce illness, death, disability, and  
          cost to society resulting from substance abuse and mental  
          illnesses.
          
                                                         Continued---



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          Existing state law:
          Establishes the California Department of Veterans Affairs  
          (CVA) to administer state military affairs and, among other  
          services, provides veterans with assistance with claims for  
          veterans' benefits under federal laws, provides direct  
          low-cost loans; and provides rehabilitative, residential,  
          and medical care and services at California Veterans Homes.

          Establishes the Department of Mental Health (DMH), which  
          directs and coordinates statewide efforts for the treatment  
          of mental health conditions and illnesses. 

          Establishes the Department of Alcohol and Drug Programs  
          (DADP) as the single state agency authorized to receive any  
          federal funds payable directly to the state by SAMHSA and  
          serve as the lead state agency for alcohol and drug  
          programs.  Among its charges, DADP is required to prepare a  
          master plan to eliminate drug and alcohol abuse in  
          California, and to develop and maintain a data system to  
          gather and obtain information on the status of alcohol and  
          other drug abuse problems in the State of California. 

          Requires counties to provide mental health services, to the  
          extent resources are available, to target populations  
          including seriously emotionally disturbed children, adults  
          and older adults who have a serious mental disorder,  
          including post-traumatic stress disorder (PTSD) and bipolar  
          disorder; adults or older adults who require or are at risk  
          of requiring acute psychiatric inpatient care, residential  
          treatment, or outpatient intervention because of a mental  
          disorder who have symptoms of psychosis, suicidality, or  
          violence; and persons who need brief treatment as a result  
          of a natural disaster or severe local emergency.  Counties  
          must provide mental health services to veterans in need of  
          services who meet these existing eligibility requirements,  
          to the extent services are available to other adults. 

          Provides that if a member of the military forces of the  
          U.S., who served in combat, is convicted of a crime as a  
          result of PTSD, substance abuse, or psychological problems  
          stemming from service in a combat theater in the U.S.  
          military, who would otherwise be sentenced to county jail  
          or state prison, the court may order the defendant into a  
          local, state, federal, or private nonprofit treatment  
          program.  The court is required to conclude that the  




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          defendant suffers from post-traumatic stress disorder,  
          substance abuse, or psychological problems as a result of  
          that service and the defendant must otherwise be eligible  
          for, and placed on, probation.  

          This bill:
          Requires CVA to submit a grant application to SAMHSA for  
          the purposes of funding community based organizations,  
          certified by CVA, to provide substance abuse and mental  
          health services to veterans.  
          
          Creates the Veterans' Substance Abuse and Mental Health  
          Services Fund (Fund) and requires all grant money from  
          SAMHSA awarded to CVA, and any interest earned, to be  
          deposited into the Fund.  Requires moneys in the Fund, upon  
          appropriation by the Legislature, to be used by CVA for  
          purposes of funding community based organizations that  
          provide substance abuse and mental health programs that the  
          Secretary of the CVA deems would benefit veterans, and to  
          pay reasonable administrative expenses. 

          Directs CVA to determine how to allocate and disburse  
          moneys from the Fund to community based organizations and  
          specifies that the moneys must only be used for providing  
          substance abuse and mental health services to veterans,  
          including, but not limited to the treatment of PTSD and  
          military sexual trauma.

          Defines military sexual trauma to mean sexual harassment or  
          physical assault that is of a sexual nature, which an  
          individual experiences during the time he or she is in the  
          military. 

          Requires CVA to develop a process by which to certify  
          community based organizations that receive funding and  
          authorizes CVA to adopt certification standards or  
          conditions that may be required by SAMHSA.

          Requires community based organizations that receive funding  
          to prepare an annual report on the programs and services  
          supported by the grant funds and submit it to CVA;   
          requires the CVA to use the report to determine renewal of  
          funding to a certified community based organization, based  
          on a criteria of success established by the CVA.





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          Provides that counties in which there are no community  
          based organizations to serve veterans may apply for a grant  
          to be used by the county to fund and provide substance  
          abuse and mental health services to veterans.
           
                                 FISCAL IMPACT 

          According to the Assembly Appropriations analysis of AB  
          710, minor absorbable costs for the grant application, and  
          to the extent grant funds are received on a sustained  
          basis, annual costs of about $100,000 for one position to  
          certify eligible community based organizations and  
          administer the grants.  Presumably a portion of these costs  
          would be covered by the federal grant funds.

                            BACKGROUND AND DISCUSSION
           
          The author states that while the VA is mandated to maintain  
          the capacity to provide specialized treatment and  
          rehabilitative services to disabled veterans, including  
          mental health services, not all veterans are eligible for  
          VA benefits.  Eligibility is based on many factors,  
          including discharge status, length of active duty,  
          financial need, and a rating to evaluate the condition that  
          occurred or began to occur during active duty.  The author  
          also states that VA health care services are prioritized  
          into seven categories, with those veterans evaluated to  
          have the greatest need identified as priority one.   
          Veterans suffering from PTSD or substance abuse receive low  
          priority and, consequently, report lengthy wait times for  
          professional care.  The author further states that  
          veterans' mental health needs place a financial burden on  
          the state, and counties and organizations that serve  
          veterans with substance abuse and mental health problems.   
          The author contends that AB 710 is needed to support  
          community programs that serve the substance abuse and  
          mental health needs of veterans and to provide additional  
          funding for these services.
          
          Post traumatic stress disorder (PTSD)
          According to the National Institute of Mental Health  
          (NIMH), PTSD is an anxiety disorder that can develop after  
          exposure to a terrifying event or ordeal in which grave  
          physical harm occurred or was threatened.  When in danger,  
          it's natural to feel afraid. This fear triggers many  




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          split-second changes in the body to prepare to defend  
          against the danger or to avoid it.  This "fight-or-flight"  
          response is a healthy reaction meant to protect a person  
          from harm. But in PTSD, this reaction is erratic.  People  
          who have PTSD may feel stressed or frightened even when  
          they're no longer in danger. 

          Traumatic events that may trigger PTSD include violent  
          personal assaults, natural or human-caused disasters,  
          accidents, or military combat.  People with PTSD may  
          experience the ordeal in the form of flashback episodes,  
          and have persistent frightening thoughts and memories of  
          their ordeal; feel detached or emotionally numb, especially  
          with people they were once close to; and, be easily  
          startled.  Feelings of intense guilt are also common.  PTSD  
          is often accompanied by irritability, sleep problems,  
          depression, substance abuse, outbursts of anger or anxiety  
          disorders.  

          Symptoms usually begin within three months of the incident  
          but may not emerge until years later.  They must last more  
          than a month to be considered PTSD.  The course of the  
          illness varies.  Some people recover within six months,  
          while others have symptoms that last much longer.  In some  
          people, the condition becomes chronic.  Effective  
          treatments for post-traumatic stress disorder are  
          available, and research is yielding new, improved therapies  
          that can help most people with PTSD and other anxiety  
          disorders lead productive, fulfilling lives.  

          Veterans' mental health issues 
          The RAND Center for Military Health Policy reports that a  
          substantial number of the 1.7 million military service  
          members returning from the conflicts in Iraq and  
          Afghanistan may face mental health problems.  A  
          comprehensive study conducted by RAND in 2008 found that an  
          estimated 18.5 percent of those back from deployment  
          reported symptoms consistent with a diagnosis of PTSD or  
          depression.  The study concluded that, the need for mental  
          health services for service members deployed to Afghanistan  
          and Iraq will increase over time, given the prevalence of  
          information available to date and prior experience with  
          Vietnam, creating additional burdens on the agencies that  
          will be called upon to care for them now and in the near  
          future.    




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          According to the National Center for PTSD, in addition to  
          other symptoms of PTSD, symptoms of combat related PTSD  
          include re-experiencing, continuing to think about, and  
          feeling as if one is still in combat; avoidance of emotion,  
          not wanting to discuss the event, feeling shut down  
          emotionally; hyperarousal, inability to relax, feeling  
          jumpy or always on guard, obsessive about security, and  
          getting angry easily.   The VA also reports that PTSD may  
          also be accompanied by other problems such as alcohol or  
          substance abuse, hopelessness, shame, despair, employment  
          problems, relationship problems including divorce and  
          violence, and physical symptoms. 

          According to information posted on the U.S. Department of  
          Defense website, army soldiers are taking their own lives  
          in record numbers. Last year, 143 soldiers killed  
          themselves, a record in the past three decades since the  
          Army has been tallying the numbers, and nearly two dozen  
          confirmed or suspected suicides in January, 2009,  prompted  
          leaders to form a senior-level task force to try to uncover  
          the causes and reform the systems to help suffering  
          soldiers.  The task force found that the problem is not  
          simply suicide-related, but that many soldiers engage in  
          unhealthy and risky behavior, such as binging on alcohol  
          and mixing it with readily available prescription drugs.   
          The drugs are prescribed for combat-related injuries, but  
          may be used to kill the pain of returning from war to face  
          the realities of the home front.  Failed marriages,  
          financial problems, military disciplinary actions, and  
          upcoming deployments all add to the stress.  Any of these  
          can serve as a trigger for someone considering suicide.  

          Military sexual trauma
          According to the VA's National Center for PTSD, military  
          sexual trauma refers to both sexual harassment and sexual  
          assault that occurs in military settings.  Both men and  
          women can experience military sexual trauma and the  
          perpetrator can be of the same or opposite gender.  The VA  
          estimates that 27 percent of men and 60 percent of women in  
          the armed forces have experienced military sexual trauma.  
          It most often occurs in a setting where the victim lives  
          and works.  In most cases, this means that victims must  
          continue to live and work closely with their perpetrators,  
          often leading to an increased sense of feeling helpless,  




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          powerless, and at risk for additional victimization.   
          Victims are often forced to choose between continuing  
          military careers during which they are forced to have  
          frequent contact with their perpetrators or sacrificing  
          their career goals in order to protect themselves from  
          future victimization.  

          Among both men and women in the active duty military,  
          sexual trauma is associated with poor psychological  
          well-being, more physical problems, and lower satisfaction  
          with health and work.  Female veterans who access VA health  
          care and report a history of sexual trauma while in the  
          military also report a range of negative outcomes,  
          including poorer psychological and physical health, more  
          readjustment problems following discharge, such as  
          difficulty finding work and abuse of alcohol and drugs, and  
          a greater incidence of unemployment due to mental health  
          problems.  Victims of military sexual trauma also identify  
          PTSD as a frequent outcome.  According to the 2008  
          Department of Defense report on military sexual trauma,  
          from the period of October 1, 2007, through September 30,  
          2008, there were 2,908 incidents of sexual trauma involving  
          military service members reported, of which 2,389 criminal  
          investigations were completed. 
          
          Access to mental health services for veterans
          According to the California Association of Veteran Service  
          Agencies (CAVSA), California veterans number over 2.1  
          million, approximately 6 percent of the state's population.  
           California has more veterans than any other state in the  
          union and it is expected to continue to grow.  CAVSA  
          reports critical obstacles exist for veterans seeking  
          mental health care and states that veterans are often  
          denied services from both VA and county providers.  CAVSA  
          reports that: 
                 not all veterans are eligible for VA services; 
                 there is a decline in mental health treatment and  
               substance abuse treatment capacity in the VA; 
                 a variability in services and lack of continuum of  
               care exists in Veterans Integrated Services Networks; 
                 there is an increased demand from newly separated  
               veterans; and,
                 there are institutional barriers to adequate mental  
               health care.  





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          CAVSA cites the VA mental task force findings that a newly  
          returning veteran will find the availability of appropriate  
          evidence-based care is haphazard and spotty.   CAVSA also  
          cites findings from a study published in the National  
          Journal of Medicine that found that, four months after  
          deployment, 15 to 17 percent of troops met the criteria for  
          PTSD, 12 months out, the same troops' rates had jumped to  
          21 percent. 
          
          On June 17, 2007, in a piece entitled, "The War Inside,"  
          the Washington Post investigated cases in which soldiers  
          with symptoms of PTSD were diagnosed as having a  
          personality disorder and given a personality disorder  
          discharge.  Since personality disorder discharges are  
          considered pre-existing, personnel discharged under these  
          provisions cannot collect disability benefits and may not  
          receive medical care from the VA.  Personality disorders is  
          a class of mental disorders characterized by rigid and  
          on-going patterns of thought and action.  

          Many other investigations have since been, and are being,  
          conducted as to the use of personality disorder discharges  
          by the military.  According to "Stars and Stripes," 24,723  
          of these discharges were executed as of June, 2008.  A  
          bipartisan group of U.S. Senators asked the Secretary of  
          Defense to launch a full review of the personality disorder  
          discharge process throughout the Armed Forces.   
          
          Related bills
          AB 1571 (Committee on Veterans Affairs) would prohibit DMH  
          from approving a county's plan for the expenditure of funds  
          from the Mental Health Services Act, as specified, unless  
          it includes verifiable representation from a legitimate  
          veterans group in the stakeholder planning process and  
          includes a separate section that specifically addresses how  
          the mental health needs of veterans are, or are not, being  
          met.  This bill is currently located in the Senate Health  
          Committee.

          Prior legislation
          AB 3083 (Committee on Veterans Affairs), Chapter 591,  
          Statutes of 2008, requires counties to provide mental  
          health services to California veterans in need of services  
          and who meet existing eligibility requirements, to the  
          extent services are available to other adults, and expands  




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          the definition of a serious mental disorder to include PTSD  
          and bipolar disorder for purposes of qualifying target  
          populations for county mental health services.   
          
          AB 2828 (Salas, 2008), which was nearly identical to this  
          bill, would have required CVA to apply for SAMHSA funding  
          to provide grants to community based organizations for  
          substance abuse and mental health services for veterans.   
          AB 2828 was vetoed by the governor, who stated in his veto  
          message that it was not identified as a high priority for  
          the state. 
          
          AB 2844 (Nation), Chapter 618, Statutes of 2006, requires  
          counties to provide mental health services to California  
          veterans in need of services and who meet existing  
          eligibility requirements to the extent resources are  
          available, and prohibits eligible veterans from being  
          denied county mental health services based solely on their  
          status as a veteran.
          
          AB 599 (Gordon), Chapter 221, Statutes of 2005, adds  
          California veterans in need of mental health services who  
          are not eligible for care by the VA or other federal health  
          care provider, and who meet existing eligibility  
          requirements, to the existing target populations that  
          counties are required to serve, to the extent resources are  
          available. 

          Arguments in support 
          Proponents contend that AB 710 would establish a process by  
          which federal funds would actively be pursued and dedicated  
          to care for veterans. 
           
          The Regional Council of Rural Counties (RCRC) argues that  
          many veterans are returning home from the Iraq and  
          Afghanistan wars with mental health disorders and/or  
          substance abuse problems at a time when state and local  
          governments can least afford their care and that a higher  
          percentage of veterans live in rural areas, and the  
          discrepancy between rural and urban areas is growing  
          markedly. 

          The California Mental Health Directors Association (CMHDA)  
          states that the federal government should be doing more to  
          ensure veterans with mental health and substance abuse  




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          disorders receive timely services.  CMHDA contends that, AB  
          710 would take advantage of available federal funding to  
          serve veterans and help establish a federal-state-local  
          community partnership to help ensure that veterans receive  
          the services they need in their communities, in particular,  
          veterans residing in small or rural communities where  
          service providers specializing in mental health and  
          substance abuse treatment are scarce. 

          The California Commission on the Status of Women argues  
          that AB 710 is needed because California has the largest  
          number of female veterans in the country, and they may be  
          at more risk for developing mental illness and more likely  
          to have serious psychological stress than their male  
          counterparts.

          Arguments in opposition
          CVA states that, while there is a great need for substance  
          abuse and mental health services for veterans, AB 710 would  
          require a new bureaucracy within the department and put it  
          in competition for grants with the very entities that the  
          bill seeks to help.  CVA argues that it is not the  
          appropriate agency to apply for SAMHSA grants because DADP  
          is the single state agency authorized to receive SAMHSA  
          funds. 

                                     COMMENTS

           1)Mental health services for veterans are fragmented,  
            limited, and for a variety of reasons, VA services may or  
            may not be available or accessible to veterans.  
              The author may wish to require that CVA, in  
            administrating the new grant program
              proposed in AB 710, collaborate and coordinate with  
            DMH, county mental health 
              programs, federal agencies responsible for providing  
            veterans' services, as well as
              national, state, and local nonprofit organizations that  
            provide veterans' services, to
              maximize the integration of services and appropriate  
            referrals and avoid duplicating
              services. 

          2)DADP is the single state agency authorized to receive any  
            federal funds payable directly to the state by SAMHSA.




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              Suggested amendments: 

                 On page 2, lines 1 - 25:
          
                  SECTION 1.  Section 703 is added to the Military  
          and Veterans Code,
                  to read:
                                                                                                  703.  (a) The department shall  submit a grant  
             application to the federal Substance Abuse and Mental  
             Health Services Administration (SAMHSA)   consult with the  
             Department of Mental Health and the Department of  
             Alcohol and Drug Programs to identify federal funds  for  
             the purpose  s  of funding community-based organizations  
             certified by the department, to provide substance abuse  
             and mental health services to veterans  by June 30, 2010  
             and on an annual basis thereafter.    
              
              If federal Substance Abuse and Mental Health Services  
             Administration funds are identified, the department  
             shall apply for the funds through the Department of  
             Mental Health and/or the Department of Alcohol and Drug  
             Programs.  If other funds are identified, the department  
             shall apply for the funds directly, to the extent  
             allowed by state and federal laws.  

                (b) All grant money awarded to the department by  
             SAMHSA, and any   interest earned thereon, shall be  
             deposited into the Veterans' Substance Abuse and Mental  
             Health Services Fund, which is hereby created as a  
             special fund in the State Treasury. Moneys in the fund  
             shall, upon appropriation by the Legislature,    These  
             funds shall  be used by the   department for purposes of  
             funding community-based organizations that provide  
             substance abuse and mental health programs that, in the  
             discretion of the secretary, would benefit California  
             veterans and to pay reasonable administrative expenses. 

              (c) (1) (A) The department shall determine how to  
             allocate and disburse  these  funds  in the Veterans'  
             Substance Abuse and Mental Health   Services Fund  to  
             community-based organizations. The funds disbursed shall  
             be used only for the purposes of providing substance  
             abuse and mental health services to veterans, including,  
             but not limited to, the treatment of posttraumatic  




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             stress disorder, including military sexual trauma.

             Page 3, lines 5 - 9:

             (2) The department shall develop a certification process  
             by which to certify community-based organizations that  
             receive funding pursuant to this section. The department  
             is authorized to adopt certification standards or  
             conditions that may be required by  SAMHSA.   the funding  
             agency  

                                  PRIOR ACTIONS  
                                         
           Senate Veterans Affairs:           6-0
          Assembly Floor:     80-0
          Assembly Appropriations:16-0
          Assembly Health:    18-0
          Assembly Business and Professions:8-0

                                    POSITIONS  
                                        
          Support:  Aging Services of California
                           American Legion, Department of California
                           AMVETS - Department of California
                           California Association of County Veterans  
          Service Officers
                           California Commission on the Status of  
          Women
                           California Mental Health Directors  
          Association
                           California Public Defenders Association
                           California State Association of Counties
                           California Therapeutic Communities
                           County of San Diego
                           Regional Council of Rural Counties
                           Vietnam Veterans of America, California  
          State Council
                           
          Oppose:  California Department of Veterans Affairs




                                   -- END --